ABSTRACT
In Japan, the population continues to flow into metropolitan areas. As of 2021, Tokyo’s metropolitan area population is expected to be approximately 29% of Japan’s total population. In areas where the population flows out, the labor force that supports economic activities is decreasing, placing a burden on these economic activities. Not only is its productivity and economic growth potential declining, it is becoming less attractive as an investment destination. Thus, making it difficult for innovation through human exchanges to occur and falling into a vicious circle of declining birthrates. Therefore, a detailed analysis is required to address this issue. As a steppingstone, this study analyzes Japanese industries using Douglas and possibilistic production functions. We found that the output value of information and communication equipment gradually increased, while the size of the information and communication industry gradually decreased. In addition, the demand for specialists, as well as science, technology, and business support services has increased.
